Indicate the effect of the transactions listed below on each of the following: working capital, current ratio, debt ratio, net income, and stockholders' equity. Use to indicate an increase, to indicate a decrease, and 0 to indicate no effect. Assume an initial current ratio of more than 1 to 1.
Working Current Debt Net Stockholders' Transaction Capital Ratio Ratio Income Equity
a. A cash dividend is declared and paid. ____ ____ ____ ____ ____
b. Cash is obtained through long-term bank loans. (Do not consider interest.) ____ ____ ____ ____ ____
c. Equipment is purchased with short-term notes. (Do not consider interest.) ____ ____ ____ ____ ____
d. Merchandise is purchased on credit. ____ ____ ____ ____ ____
e. A fixed asset is sold for more than book value. ____ ____ ____ ____ ____
